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How an Obamacare repeal could affect employer-based coverage

Two weeks ago, Republicans unveiled their first draft of a replacement plan for the Affordable Care Act, called American Health Care Act. While there is still no confirmation of how much the replacement plan could cost, its proposed changes could leave millions without health insurance. Those who get health insurance through the open market – accounting for 7 percent of the U.S. population – aren’t the only ones who could be impacted by the new law. Below, we take a look at what the proposed plan could mean for those with health insurance through their employer.

Under the Affordable Care Act, employers with 50 or more full-time workers are required to provide health insurance to those employees. A Kaiser Family Foundation report found that 49 percent of Americans received health insurance through their employers in 2015. However, under the proposed replacement plan, large employers would no longer be required to offer health insurance to their employees.

Under the Affordable Care Act, large employers would face a fine for not offering coverage to their employees; under the American Health Care Act, these same employers would face no such fine. Eliminating this requirement could cause as many as 20 million people to lose their employer-sponsored coverage.

While the American Health Care Act is not yet approved, it’s clear that Americans who receive coverage through their employers shouldn’t consider themselves exempt from these changes. As details of the American Health Care Act emerge, we will continue to provide updates and education on our blog.